Derivative instruments

12 Months Ended

Jul. 31, 2017

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative instruments

7. Derivative instruments

Certain of our foreign operations have revenues and expenses transacted in currencies other than its functional currency. In order to mitigate foreign currency exchange risk, we use forward contracts to lock in exchange rates associated with a portion of our forecasted international expenses.

As of July 31, 2017, we have forward contracts outstanding with notional amounts totaling $10.9 million. These contracts are designated as cash flow hedges, and the unrealized gain of $0.5 million, net of tax, on these contracts are reported in Accumulated other comprehensive income as of July 31, 2017. Assets and liability derivatives designated as hedging instruments are presented in other current assets and other current liabilities, respectively, on our Consolidated Balance Sheets. At July 31, 2017 we had a derivative asset of $0.6 million included in other current assets on our Consolidated Balance Sheets. As of July 31, 2016, we have forward contracts outstanding with notional amounts totaling $18.6 million.  These contracts are designated as cash flow hedges, and the unrealized loss of $0.2 million, net of tax, on these contracts are reported in Accumulated other comprehensive income as of July 31, 2016. At July 31, 2016 we had a derivative liability of $0.3 million included in other current liabilities on our Consolidated Balance Sheets.

Realized gains and (losses) on the cash flow hedges are recognized in income in the period when the payment of expenses is recognized. During fiscal years 2017, 2016 and 2015, we recorded approximately $(0.6) million, $(0.7) million, and $(0.5) million of realized loss, respectively, included in our Consolidated Statements of Operations.